What information it provides?
Investors need information and the best way to provide the information would be through the offer document. This would provide investors with ample guidance on whether they should skip the scheme of the mutual fund or go ahead and invest.
The information provided by the mutual fund scheme would be exhaustive and include investment objectives of the particular scheme, the load structure that is applicable, subscription and redemption policies etc.
The abridged offer document tends to accompany the application form of the mutual fund scheme.
Why it's important?
Investors need to take informed decision and hence the offer document needs to be studied in detail and not just skimmed through. For example, if the scheme invests only in debt and you are an investor who is wiling to take risk, you would want to avoid the scheme. Hence, the offer document provides valuable guidance for investors.